The A Partnership for National Unity and Alliance For Change (APNU+AFC) government has come in for severe criticism from Opposition Member of Parliament Joseph Hamilton over its move to reduce the excise tax attached to alcohol.
Hamilton believes that the government did not consider what is best for the nation in making this move. He said that there are no real benefits to be derived from the lowering of the taxes.
“The nation will not benefit, the only ones to benefit are the political sponsors.”
As a measure to bring equity to the charging of excise tax on alcoholic beverages, Minister of Finance, Winston Jordan, during his Budget Speech, proposed the amendment of Excise Tax Act No. 11 of 2005, to provide for a new basis for the imposition of excise tax on alcohol for consumption.
He told the National Assembly that the intent is to introduce a graduated, specific rate system for the collection of excise tax on alcohol based on the alcoholic strength.

PPP Member of Parliament, Joseph Hamilton

“This is deemed to be the most effective way of dealing with importers and domestic manufacturers of alcoholic beverages. It will also be easier for the Guyana Revenue Authority (GRA) to administer as well as reduce significantly, opportunities for manipulating the values of the goods for the purpose of taxation,” Jordan said.
As he made his contributions to the budget debates last week, Hamilton said that the lowering of the exercise tax on alcohol is one of the moves by this government that has caused it to be given a low grade. He basically described it as a nonsensical move which will not be supported by the PPP.
Hamilton told the National Assembly that any tax adjustment on the importation of alcohol should have been upward.
He said that other jurisdictions around the world opt to raise the taxes to earn revenue and to discourage citizens from abusing the substance.
The opposition Member of Parliament noted that alcohol abuse is prevalent in Guyana. He said that the effects of alcohol abuse are vast and therefore, a caring and smart government should move to—by policy and measures—discourage the excess use of alcohol.
Hamilton said that Guyana has recorded a high number of road accident fatalities due to the negligence of drunk drivers.
He spoke about murders committed by persons under the influence of alcohol. In this regard, the MP highlighted rum shop brawls and killings at various wedding houses.
Hamilton then turned his attention to spousal and child abuse; that too, he said, is more prevalent among those who drink to excess.
The Member of Parliament added that alcohol abuse has been shown to be a factor for the contraction of non-communicable diseases.
In this regard, Hamilton blazed the two Ministers of Health, Dr, George Norton (Senior Minster) and Dr Karen Cummings.
He said that the Ministers cannot be serious about seeking to reduce the prevalence of non communicable diseases while commending a Budget that includes measures that promote the use of alcohol.
The politician questioned whether the Ministers had a say, if they knew of that measure, and if they supported it.
Hamilton urged to government to let its measures match the goals it has set for itself.
“Alcohol use should be discouraged and not encouraged by government tax measures. In reducing the excise tax on alcohol, consideration could have only been given to the lobbing of political sponsors.”
Further, the politician described the Budget as a “vampire budget—only sucking the blood life out of poor and powerless but it proposes measures to benefit the rich.”
When the govt. implemented the 2:00am curfew, it had stated one of the reasons to be the number of accidents caused by drunk drivers.